US offers Kenya help to build critical minerals processing industry

The United States has offered to help Kenya establish a domestic critical minerals processing industry, a move that underscores the intensifying global competition with China over access to strategic resources.

Frank Garcia, the US assistant secretary of state for Africa, made the pledge during a meeting with the American Chamber of Commerce in Kenya. He said critical minerals are a top priority for the administration and that Washington is ready to work with Nairobi as it seeks to become a regional leader in the sector.

Garcia stressed that the US favours a mining model that includes local processing and value addition in producer countries. He contrasted this approach with competitors who extract minerals and process them elsewhere, capturing the economic benefits far from the source.

The announcement comes as Kenya evaluates bids to develop the Mrima Hill deposit on its coast. The site is believed to hold significant reserves of rare earth minerals and niobium, a metal used in aerospace manufacturing. US firm Critical Metals Corp and Australia's RareX have both said they were shortlisted for the project, though Kenya has not published an official list.

Kenyan President William Ruto welcomed the US support, saying local processing would help create jobs. He noted that Kenya is accelerating responsible exploration of rare earths, titanium, graphite, lithium, and niobium.

The US International Development Finance Corporation is already backing a pipeline of African rare earth projects as Washington seeks to reduce its reliance on China, which dominates global supply chains and has tightened export controls in recent years.

Ruto had indicated in June that Kenya and the US were close to finalising a critical minerals agreement, but no update was provided at Wednesday's meeting.